Thermon Group Holdings, Inc. (NYSE:THR) Just Released Its Full-Year Earnings: Here's What Analysts Think

Last week, you might have seen that Thermon Group Holdings, Inc. (NYSE:THR) released its annual result to the market. The early response was not positive, with shares down 5.4% to US$33.76 in the past week. The result was positive overall - although revenues of US$495m were in line with what the analysts predicted, Thermon Group Holdings surprised by delivering a statutory profit of US$1.51 per share, modestly greater than expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Thermon Group Holdings

Taking into account the latest results, the consensus forecast from Thermon Group Holdings' four analysts is for revenues of US$541.9m in 2025. This reflects a decent 9.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 5.8% to US$1.62. Before this earnings report, the analysts had been forecasting revenues of US$546.5m and earnings per share (EPS) of US$1.68 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at US$37.33, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Thermon Group Holdings analyst has a price target of US$42.00 per share, while the most pessimistic values it at US$32.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Thermon Group Holdings' growth to accelerate, with the forecast 9.6% annualised growth to the end of 2025 ranking favourably alongside historical growth of 4.9% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 8.1% per year. Thermon Group Holdings is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Thermon Group Holdings. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$37.33, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Thermon Group Holdings going out to 2026, and you can see them free on our platform here.

You can also see whether Thermon Group Holdings is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.